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Calcimator

Life Settlement Value Calculator

Estimate the potential life settlement amount from selling your life insurance policy on the secondary market.

Inputs

$
$
$
years old

Results

Estimated Settlement Value

$38,500.00

≈ 4 years of state college

Cash Surrender Value$35,000.00
Settlement as % of Face Value7.7%
Premium Over Surrender Value10%
Remaining Premiums to LE$80,000.00
Net Death Benefit$420,000.00
How to Use This Calculator
  1. Enter the policy face value (death benefit).
  2. Input your current annual premium.
  3. Enter the policy's cash surrender value from your most recent statement.
  4. Input the insured's current age and life expectancy estimate.
  5. Review the estimated life settlement range — typically 20–40% of face value — as a benchmark before negotiating with brokers.

How the result changes with Life Expectancy

Life ExpectancyEstimated Settlement Value
69$221,238.94
77$114,027.79
88$38,500.00
97$38,500.00

What each input means

Policy Face Value
The death benefit amount of your life insurance policy.
Annual Premium
Your current annual premium for this policy.
Cash Surrender Value
Current cash value if you surrender the policy to the insurer.
Current Age
Your current age. Life settlements are typically available age 65+.
Life Expectancy
Estimated life expectancy based on health. Shorter LE increases settlement value.
Health Rating
1 = Poor health (higher settlement), 2 = Average, 3 = Good health (lower settlement).

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Policy Face Value = 500000, Annual Premium = 8000, Cash Surrender Value = 35000, Current Age = 72 = 6 input(s) provided
  2. Calculate Estimated Settlement Value
    Estimated Settlement Value
    38500 = $38,500
  3. Calculate Cash Surrender Value
    Cash Surrender Value
    35000 = $35,000
  4. Calculate Settlement as % of Face Value
    Settlement as % of Face Value
    7.7 = 7.7%

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